NOTIFICATION OF WRITE-DOWN

The Management Board of Polenergia S.A. (‘Company’) hereby notifies that on 18th October 2017 the Company decided to make a write-down adjusting the fixed assets connected with the implementation of Elektrownia Północ project (‘Project’) developed by the Company’s subsidiary, i.e. Polenergia Elektrownia Północ sp. z o.o. (‘EP’).

The estimated value of the write-down is PLN 81 million. The write-down is non-cash. It will be included in the Company’s consolidated financial statement for the 3rd quarter of 2017 in other operating expenses. It will charge the Group’s operating results without affecting EBITDA, according to the accepted definition. The presented item is estimated and is subject to change.

Taking this decision, the Management Board took into account the market and economic conditions of the Project. Having regard to the intention to dispose of the rights to the Project or EP shares, the Company will continue its efforts to maintain the appropriate status of its development, especially the process of obtaining the necessary approvals, taking into account the economic viability of the undertaken operations.